Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (11) TMI 1343 - AT - Income TaxAddition of peak credit - Peak Credit working - credit of withdrawals - HELD THAT:- CIT(A) has not given credit of withdrawal made on 27-09-2007 on the reasoning that the assessee has withdrawn money by using cheque. I do not find any rationale to this decision, since it is the assessee who has withdrawn money and hence the same should be given credit while working out peak credit. With regard to the withdrawal made on 28-09-2007, CIT(A) has not given credit for the same on the reasoning that the deposits have been made after expiry of 53 days. This time gap can be considered only if it is shown that the withdrawal made earlier was not available with the assessee when subsequent deposits were made. In the absence of any such material, I am of the view that the assessee should be given credit of withdrawal of ₹ 3.00 lakhs made. Accordingly, the observations made by Ld CIT(A) with regard to the above said two withdrawals are also liable to be set aside. Accordingly, set aside the observations made by Ld CIT(A) in paragraph 5.4 of his order. Since the assessing officer has not verified the peak credit workings, I restore this issue to his file for the limited purpose of verifying the peak credit workings and accordingly direct the AO to assessee 1/3rd of peak credit balance in the hands of the assessee.
|